HHV Announces Demerger Plan: Unlocking Growth Potential in Vacuum Systems and Thin Films

Bangalore, India – Hind High Vacuum Co Pvt Ltd (HHV), Bangalore based India's premier thin film and vacuum technology company with close to 60 years of expertise in the design and manufacture of high vacuum equipment for research and industrial applications, has announced a demerger plan to create a simplified corporate structure. The revised structure will have two separate entities for vacuum systems and for thin film focused businesses, respectively. This re-structuring is to unlock the growth potential of each of its businesses.

The Regional Director, South-Eastern Region, Ministry of Corporate Affairs, Hyderabad, has approved the demerger of the Vacuum Systems business into HHV Thermal Technologies Private Ltd and Thin Films business into HHV Advanced Technologies Pvt Ltd. Both HHV Thermal Technologies Pvt Ltd and HHV Advanced Technologies Pvt Ltd are 100 percent subsidiaries of HHV. Accordingly, the Vacuum Systems division, which manufactures state-of-the-art vacuum furnaces and carbon-carbon composites within HHV, has been transferred to HHV Thermal Technologies Pvt Ltd including the design, manufacturing rights, employees, customers, and suppliers. All pending orders will now be executed by HHV Thermal Technologies Pvt Ltd.

Similarly, the Thin Films division, which manufactures a full range of PVD and other technology based thin film deposition equipment, and the Thin Film Coatings division, which manufactures a full range of optical components from flats to lenses covering the UV, visible, and infrared space within HHV, have been transferred to HHV Advanced Technologies Pvt Ltd, including the design, manufacturing rights, employees, customers, and suppliers. All pending orders will now be executed by HHV Advanced Technologies Pvt Ltd.

The demerger and simplification of the corporate structure is expected to create synergies for both businesses. It will simplify the HHV corporate structure with two separate pure-play entities in Vacuum Systems and Thin Films businesses; further strengthen the governance architecture for the businesses with separate dedicated boards and management teams; create an optimal capital structure for each business; and give both entities the ability to independently pursue growth plans organically and inorganically.

The demerger and simplification of the corporate structure will lead to the creation of separate sector-focused entities in Vacuum Systems and thin Films businesses. It will attract business specific specialists and reputable professionals to be part of its board or management team to give them the expected growth levels. Individual companies will be focused on upgrading and investing in newer technologies within their specific businesses. Both companies will continue to operate within the overall vision and principles laid out by HHV, thereby ensuring business principles and integrity are protected.

Image Source: HHV

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